Time Favors Bitcoin, and Its Superiority Will Be Obvious for Everyone Sooner or Later
It’s only a matter of time.
The economic crisis that has been awaited for years is taking shape before our very eyes. The coronavirus will have been the trigger for an unavoidable event. Contrary to what Wall Street traders had hoped for, it was illusory to believe in the infinite growth of the financial markets.
This infinite growth became all the more untenable because it was not based on anything tangible. Over the last ten years or so, it has been the policies of central banks and massive share buybacks by companies that have made it possible to sustain stock market prices.
The value of companies was simply artificially inflated.
The financial market collapse we are seeing is therefore quite logical. If it was triggered by the sharp acceleration in the spread of the coronavirus, this fall on Wall Street was not due to the coronavirus, as some people are trying to make you believe.
Current System Is Based on Fragile Foundations
The financial markets, and more broadly the entire monetary and financial system, rest on very fragile foundations. In an attempt to save this system at all costs, the Fed has just given yet another example of the fact that the U.S. dollar is not based on anything tangible.
In just one month, this of March 2020, the Fed succeeded in lowering interest rates by 150 basis points to reach a target of zero, which has long been taboo in the past.
Today, there is no longer any taboo for the Fed, which decided on March 23, 2020 to conduct an unlimited quantitative easing program. Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, even went so far as to boast that the Fed has an infinite amount of U.S. dollar at its disposal:
“There is an infinite amount of cash in the Federal Reserve. We will do whatever we need to do to make sure there’s enough cash in the banking system.”
— Neel Kashkari
You understand that the banking system will be saved at all costs. Currently, it is estimated that this price will represent an injection of liquidity of at least $6T.
Plan Bitcoin Becomes Inevitable
Such an injection of liquidity into the fiat system makes the plan Bitcoin inevitable. Indeed, this massive injection of liquidity will cause a major monetary devaluation of the U.S. dollar.
Better yet, the United States will once again export its inflation since other central banks will have no choice but to align themselves with these measures decided by the Fed. The Fed has announced this week that it will increase the U.S. dollar that it makes available to other central banks.
All of this is already very worrying, but perhaps the worst is to be found in a news story that has gone almost unnoticed by the general public.
At the same time as it announced its liquidity injections into the banking system, the Fed also announced that it was lowering the reserve requirement rate for U.S. banks to zero.
This announcement has left many people stunned as they don’t really understand what it means. The current monetary and financial system is deliberately doing everything possible to prevent you from understanding these kinds of vitally important details.
In this regard, I invite you to remember what Henry Ford said about people’s understanding of the monetary and financial system:
“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”Henry Ford
The powerful at the head of the system therefore keep you in the dark in order to avoid a real revolution.
You Need to Look Beyond the Current Monetary and Financial System
As a result, many people have no idea how money works, which tends to trap them into 5 thought patterns that bind them to the fiat system. The worst thing is that these patterns prevent them from buying Bitcoin and experimenting with an alternative.
It is essential that you are able to break these thought patterns in order to free yourself from a system in which you have always been trapped. Nevertheless, this path can only be achieved through individual awareness.
If you are already convinced of the importance of Bitcoin for the future of the world, you probably won’t be able to convince your family or friends if they are not ready.
In reality, the decision to buy Bitcoin is an entirely personal one, and everyone has to come to the realization that they have to switch to an alternative to opting out of the current monetary and financial system.
Without this awareness, you probably won’t be able to understand also that lowering the reserve requirement for banks to zero means that from now on they will be able to create as much money, or rather as much debt, as they want.
Bitcoin Allows You to Become Your Own Bank
The Fed is giving all the power to the U.S. banks, since the U.S. banks are generally controlled mainly on the reserve requirement rate that they have to keep.
A reserve requirement rate to zero will support the U.S. economy in the first instance.
Indeed, loans or mortgages will be granted to people who would not have been entitled to them previously.
All this is not without risk for the custodians of money. From now on, when you see a balance of $10,000 on your bank account, it will not mean anything anymore. In fact, you will have no guarantee that you will be able to withdraw that money if you wish.
You will not have that guarantee because the bank probably does not have that money.
If everyone wanted to withdraw their money in cash at the same time, the bank would simply go bankrupt. To avoid this, you may fear that restrictions on withdrawals will be imposed in the near future if the situation becomes untenable.
This has already happened in July 2015 in Greece in particular.
To avoid this, you need to be far-sighted and start thinking about making Bitcoin your own bank.
In the coming months, the economic crisis will make things difficult for everyone. That is a certainty.
Bitcoin Is a New Solution to the Crisis That Awaits Us
In the past, you had no alternative solution available to you. With Bitcoin, thanks to Satoshi Nakamoto, the situation is now different. You can make the individual choice to limit the risk that the fiat system poses to your wealth.
Opponents of Bitcoin try to make you believe that Bitcoin is correlated to Wall Street or to gold, in order to explain to you that it is not a hedge that can protect you in the situation we are about to experience.
Instead of listening to them uncritically, you should take a step back. Instead of looking just at March 2020, you can look at a period of one year to start with. If you have fun doing this little exercise, you will see the bigger picture for Bitcoin.
The reality is that for the past year Bitcoin outperforms largely Wall Street, and even gold.
Over a year, Bitcoin price has risen +35% compared to +25% for gold. At the level of Wall Street, the fall is very heavy with -20% for the Dow Jones, and -14% for the S&P 500.
Wall Street’s very mild reaction to the Fed’s monetary stimulus, and to the announcements by the U.S. government, which will notably send a check for $1,200 to all U.S. citizens, even makes us fear the worst for the coming weeks.
Nothing says that the market has already incorporated the bad news on the U.S. job market, which will continue to accumulate week after week.
Nothing says that the market has already anticipated all the requests for bailouts that will be coming to the American authorities from companies that have spent the last ten years carrying out massive share buyback programs rather than saving cash in case of a hard blow.
Time Favors Bitcoin
Once again, the monetary and financial system is to blame for all these mistakes. It constantly pushes people to spend more and more, because the currency devaluation of the U.S. dollar, which never stops, takes away any interest in saving.
Bitcoin is once again different in that it has a clear and fixed monetary policy.
There will never be more than 21 million Bitcoins in circulation, and inflation of Bitcoin supply will automatically halve every 210,000 blocks to reach zero by 2140.
As you can see, Bitcoin allows you to think long term because it gives you certainty in an increasingly uncertain world. Time favors Bitcoin, and people who choose the plan Bitcoin now will probably be greatly rewarded in the future.
A future in which sooner or later, even the fiercest opponents of Bitcoin will have to face the obvious: an alternative to the current 49-year-old system must emerge.
That alternative that offers us a chance for a better and fairer world in the future is simply Bitcoin.